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Does Culture Affect Unemployment? Evidence from the Röstigraben

  • Brügger, Beatrix

    ()

    (University of Lausanne)

  • Lalive, Rafael

    ()

    (University of Lausanne)

  • Zweimüller, Josef

    ()

    (University of Zurich)

This paper studies the role of culture in shaping unemployment outcomes. The empirical analysis is based on local comparisons across a language barrier in Switzerland. This Röstigraben separates cultural groups, but neither labor markets nor political jurisdictions. Local contrasts across the language border identify the role of culture for unemployment. Our findings indicate that differences in culture explain differences in unemployment duration on the order of 20%. Moreover, we find that horizontal transmission of culture is more important than vertical transmission of culture and that culture is about as important as strong changes to the benefit duration.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4283.

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Length: 47 pages
Date of creation: Jul 2009
Handle: RePEc:iza:izadps:dp4283
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